Sareum Holdings PLC (LON:SAR) has said it is raising £718,500 before expenses via a placing of shares at 0.6p each with the new funds used to explore the potential benefit of its TYK2/JAK1 inhibitors against coronavirus (COVID-19).
A separate fundraiser overseen by PrimaryBid will offer private investors new shares in the company on the same terms.
As at March 31, 2020, Sareum had cash of £980,000. It expects to receive a research and development tax credit next January of £150,000.
Outside of the potential COVID-19 indication, the firm is focused on the pre-clinical development of its small-molecule TYK2/JAK1 inhibitors for cancer and autoimmune diseases. Preparatory work is being made to advance candidates towards human trials.
In an announcement, the group also confirmed it “continues to engage with interested parties regarding the further development and potential commercialisation” of TYK2/JAK1 drugs SDC-1801 and SDC-1802.
“We are targeting the completion of at least one preclinical study in the fourth quarter and are developing our plans for the initial clinical trials with both compounds,” said chief executive Tim Mitchell.